Slowing market 'good for buyers'

Homebuyers are likely to benefit from a downturn in the UK property market during 2008, an expert has said.

David Kuo, head of personal finance at independent advisory firm Fool, commented on market figures from the company which indicate "good news" for prospective buyers this year.

After noting signs that the housing market was beginning to moderate in December, the company has predicted prices to fall by around 20 per cent over the next 12 months.

The average house price for 2007 was around £197,000, but even after a 20 per cent reduction the resulting value will still be about six times the average salary of a first-time buyer (FTB), Mr Kuo said.

FTBs are therefore advised by the expert to remain "very cautious".

For others, however, Mr Kuo said: "It [the market downturn] is good news for buyers and it is exactly what they [buyers] have been waiting for."

Fool research has also revealed that despite the expected downturn in the property market, 75 per cent of homeowners who had previously laid out plans to sell their properties in the next five years have said they will not alter their intentions.

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